Financial incentives for photovoltaicsFinancial incentives for photovoltaics are incentives offered to electricity consumers to install and operate solar-electric generating systems, also known as photovoltaics (PV). Governments offered incentives in order to encourage the PV industry to achieve the economies of scale needed to compete where the cost of PV-generated electricity is above the cost from the existing grid. Such policies were implemented to promote national or territorial energy independence, high tech job creation and reduction of carbon dioxide emissions which cause climate change.
Rooftop solar powerA rooftop solar power system, or rooftop PV system, is a photovoltaic (PV) system that has its electricity-generating solar panels mounted on the rooftop of a residential or commercial building or structure. The various components of such a system include photovoltaic modules, mounting systems, cables, solar inverters and other electrical accessories. Rooftop mounted systems are small compared to utility-scale solar ground-mounted photovoltaic power stations with capacities in the megawatt range, hence being a form of distributed generation.
Photovoltaic systemA photovoltaic system, also PV system or solar power system, is an electric power system designed to supply usable solar power by means of photovoltaics. It consists of an arrangement of several components, including solar panels to absorb and convert sunlight into electricity, a solar inverter to convert the output from direct to alternating current, as well as mounting, cabling, and other electrical accessories to set up a working system. It may also use a solar tracking system to improve the system's overall performance and include an integrated battery.
Photovoltaic system performancePhotovoltaic system performance is a function of the climatic conditions, the equipment used and the system configuration. PV performance can be measured as the ratio of actual solar PV system output vs expected values, the measurement being essential for proper solar PV facility's operation and maintenance. The primary energy input is the global light irradiance in the plane of the solar arrays, and this in turn is a combination of the direct and the diffuse radiation.
Growth of photovoltaicsBetween 1992 and 2022, the worldwide usage of photovoltaics (PV) increased exponentially. During this period, it evolved from a niche market of small-scale applications to a mainstream electricity source. When solar PV systems were first recognized as a promising renewable energy technology, subsidy programs, such as feed-in tariffs, were implemented by a number of governments in order to provide economic incentives for investments. For several years, growth was mainly driven by Japan and pioneering European countries.
Solar panelA solar panel is a device that converts sunlight into electricity by using photovoltaic (PV) cells. PV cells are made of materials that generate electrons when exposed to light. The electrons flow through a circuit and produce direct current (DC) electricity, which can be used to power various devices or be stored in batteries. Solar panels are also known as solar cell panels, solar electric panels, or PV modules. Solar panels are usually arranged in groups called arrays or systems.
Solar power by countryMany countries and territories have installed significant solar power capacity into their electrical grids to supplement or provide an alternative to conventional energy sources. Solar power plants use one of two technologies: Photovoltaic (PV) systems use solar panels, either on rooftops or in ground-mounted solar farms, converting sunlight directly into electric power. Concentrated solar power (CSP, also known as "concentrated solar thermal") plants use solar thermal energy to make steam, that is thereafter converted into electricity by a turbine.
Cadmium telluride photovoltaicsCadmium telluride (CdTe) photovoltaics is a photovoltaic (PV) technology based on the use of cadmium telluride in a thin semiconductor layer designed to absorb and convert sunlight into electricity. Cadmium telluride PV is the only thin film technology with lower costs than conventional solar cells made of crystalline silicon in multi-kilowatt systems. On a lifecycle basis, CdTe PV has the smallest carbon footprint, lowest water use and shortest energy payback time of any current photovoltaic technology.
Solar powerSolar power is the conversion of energy from sunlight into electricity, either directly using photovoltaics (PV) or indirectly using concentrated solar power. Photovoltaic cells convert light into an electric current using the photovoltaic effect. Concentrated solar power systems use lenses or mirrors and solar tracking systems to focus a large area of sunlight to a hot spot, often to drive a steam turbine.
PhotovoltaicsPhotovoltaics (PV) is the conversion of light into electricity using semiconducting materials that exhibit the photovoltaic effect, a phenomenon studied in physics, photochemistry, and electrochemistry. The photovoltaic effect is commercially used for electricity generation and as photosensors. A photovoltaic system employs solar modules, each comprising a number of solar cells, which generate electrical power. PV installations may be ground-mounted, rooftop-mounted, wall-mounted or floating.
Alternative investmentAn alternative investment, also known as an alternative asset or alternative investment fund (AIF), is an investment in any asset class excluding stocks, bonds, and cash. The term is a relatively loose one and includes tangible assets such as precious metals, collectibles (art, wine, antiques, vintage cars, coins, musical instruments, or stamps) and some financial assets such as real estate, commodities, private equity, distressed securities, hedge funds, exchange funds, carbon credits, venture capital, film production, financial derivatives, cryptocurrencies, non-fungible tokens, and Tax Receivable Agreements.
IncentiveIn general, incentives are anything that persuade a person to alter their behaviour in the desired manner. It is emphasised that incentives matter by the basic law of economists and the laws of behaviour, which state that higher incentives amount to greater levels of effort and therefore higher levels of performance. An incentive is a powerful tool to influence certain desired behaviors or action often adopted by governments and businesses. Incentives can be broadly broken down into two categories: intrinsic incentives and extrinsic incentives.
Photovoltaic power stationA photovoltaic power station, also known as a solar park, solar farm, or solar power plant, is a large-scale grid-connected photovoltaic power system (PV system) designed for the supply of merchant power. They are different from most building-mounted and other decentralized solar power because they supply power at the utility level, rather than to a local user or users. Utility-scale solar is sometimes used to describe this type of project.
Government spendingGovernment spending or expenditure includes all government consumption, investment, and transfer payments. In national income accounting, the acquisition by governments of goods and services for current use, to directly satisfy the individual or collective needs of the community, is classed as government final consumption expenditure. Government acquisition of goods and services intended to create future benefits, such as infrastructure investment or research spending, is classed as government investment (government gross capital formation).
Income distributionIn economics, income distribution covers how a country's total GDP is distributed amongst its population. Economic theory and economic policy have long seen income and its distribution as a central concern. Unequal distribution of income causes economic inequality which is a concern in almost all countries around the world. Classical economists such as Adam Smith (1723–1790), Thomas Malthus (1766–1834), and David Ricardo (1772–1823) concentrated their attention on factor income-distribution, that is, the distribution of income between the primary factors of production (land, labour and capital).
Concentrated solar powerConcentrated solar power (CSP, also known as concentrating solar power, concentrated solar thermal) systems generate solar power by using mirrors or lenses to concentrate a large area of sunlight into a receiver. Electricity is generated when the concentrated light is converted to heat (solar thermal energy), which drives a heat engine (usually a steam turbine) connected to an electrical power generator or powers a thermochemical reaction. As of 2021, global installed capacity of concentrated solar power stood at 6.
Deficit spendingWithin the budgetary process, deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit, or budget deficit; the opposite of budget surplus. The term may be applied to the budget of a government, private company, or individual. Government deficit spending was first identified as a necessary economic tool by John Maynard Keynes in the wake of the Great Depression. It is a central point of controversy in economics, as discussed below.
Incentive programAn incentive program is a formal scheme used to promote or encourage specific actions or behavior by a specific group of people during a defined period of time. Incentive programs are particularly used in business management to motivate employees and in sales to attract and retain customers. Scientific literature also refers to this concept as pay for performance. Motivation Employee incentive programs are programs used to increase overall employee performance.
Investment fundAn investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These advantages include an ability to: hire professional investment managers, who may offer better returns and more adequate risk management; benefit from economies of scale, i.e., lower transaction costs; increase the asset diversification to reduce some unsystematic risk.
Household income in the United StatesHousehold income is an economic standard that can be applied to one household, or aggregated across a large group such as a county, city, or the whole country. It is commonly used by the United States government and private institutions to describe a household's economic status or to track economic trends in the US. A key measure of household income is the median income, at which half of households have income above that level and half below. The U.S.
